Expansionary macro policies still necessary

CAI MENG/CHINA DAILY The outlook for China's economic growth this year is generally positive. Consumption, production and investment have recovered significantly after the optimization of contagion control policies with last year's low base providing room for rapid growth on a comparative basis. When China's economy confronted downside challenges in the past, policies were mainly adopted on the supply side to protect market entities, but after total population peaks, China's macroeconomic policy should be partly shifted to the demand side to better help low- and middle-income families. We should understand that relaxed fiscal policy, rather than the market's endogenous growth, is the major reason for China's current economic recovery. The biggest change in last year's fiscal policy was the 740 billion yuan policy development financial instrument introduced in the second half.